European Aluminum impact of import tariff reduction

2010-01-06 06:58:26

NEW YORK, May 6 news: according to the European consumer association analysis of aluminum that the EU should cut all non-alloy aluminum alloy aluminum products, import duties, indirect aluminum producers to carry out some of the potential benefits, and to protect the region's downstream industries.
 
    According to the Association, analysts said, tariff threat to the survival of the aluminum industry in Europe, the issue, which is why a 3 percent reduction of non-alloy aluminum ingots and aluminum products 6% import tariff causes.
 
    From the current industrial structure point of view, the major groups are in the consolidation of the upstream aluminum industry, in particular, Rio Tinto acquired Alcan events, means that these companies are reducing the downstream aluminum industry, degree of concern. As the three aluminum, Alcan Rio Tinto Group, Alcoa and Norsk Hydro Group, the Group of its labor force in the region only accounts for the distribution of the downstream aluminum industry, the local labor force proportion of about 5%.
 
    Relative to the downstream industries accounted for 95%, oligopoly company Rio Tinto Alcan, Alcan, Alcoa and Norsk Hydro accounted for only 5% of the labor force in the region. At present the three companies are laying off staff and mining giants, and some integration of upstream industries, while also separating downstream business. The aluminum company wants to retain the current existing import tariff rate, because for these companies, the adoption of the additional revenue generated by tariffs would be the potential profits of these enterprises.
 
    Judging from the current aluminum market, overall analysis, the aluminum market trends, fierce market competition, the EU competitiveness of the downstream aluminum industry, weakening aluminum prices between the new integration between products ever-increasing competition between the rising aluminum premiums and bids for products, as well as environmental concerns are the EU to reduce import tariffs on aluminum with the urgency and necessity.
 
    For the aluminum reduction of import tariffs, the industry that have an impact in the following areas:
 
    Tariff reduction will be able to enhance the industry's competitiveness and promote growth in demand, but also be able to create many job opportunities. Last year, half of non-alloy aluminum import tariffs, in fact, exacerbated the downstream industrial market distortions and unfair competition.
 
    With the decline in European refining capacity and consumption rate of 4% a year growth of aluminum industry's future will depend on the downstream companies. However, serious impact on the EU's tariffs on aluminum transformer in the domestic and international market competitiveness.
 
    The European Aluminum Consumers Association that the tariff is already a barrier, which allows consumers to be able to find a stable, adequate and competitive supply of aluminum products has become more difficult and will therefore pay a higher cost. It is estimated that each year the EU imports of aluminum transformer will pay tariffs up to 5 billion euros (782 million U.S. dollars)
 
    Rio Tinto Group's acquisition of Alcan will be possible to further reduce the demand for European manufacturers of aluminum supply, due to increasingly fierce market competition, Rio Tinto plans to sell downstream assets in Europe to give an aluminum transformer manufacturers to reduce production costs and retrenchment has brought enormous pressure.
 
    Last year, import duty reduction to 3%, the alloy products of duty-paid premiums, and further out of touch with the world market, such as billet and cast alloy wheels alloy manufacturing.
 
    The European Consumers Association analysis of aluminum, in an increasingly fierce market competition, Europe's downstream customers to pay more per tonne of 150-200 U.S. dollars.